AU-5.2 AU-5.2 Annual License Fees
AU-5.2.1
Licensees must pay the relevant annual license fee to the CBB on 1st of December of the preceding year for which the fee is due.Amended: July 2013
January 2013AU-5.2.2
Financing company licensees must pay a variable annual licensing fee based on 0.25% of theirrelevant operating expenses , subject to a floor of BD6,000 and a cap of BD24,000.Amended: July 2013
January 2013AU-5.2.3
Relevant operating expenses are defined as the total operating expenses of the licensee concerned, as recorded in the most recent audited financial statements available, subject to the adjustments specified in Rule AU-5.2.4.January 2013AU-5.2.4
The adjustments to be made to
relevant operating expenses are the exclusion of the following items from total operating expenses:(a) Training costs;(b) Charitable donations; and(c) Previous year's CBB fees paid.January 2013AU-5.2.5
The CBB would normally rely on the audited accounts of a
licensee as representing a true and fair picture of its operating expenses. However, the CBB reserves the right to enquire about the accounting treatment of expenses, and/or policies on intra-group charging, if it believes that these are being used artificially to reduce a license fee.January 2013AU-5.2.6
Licensees must complete and submit Form ALF (Annual License Fee) to the CBB, no later than 15th October of the preceding year for which the fees are due.Amended: July 2013
January 2013AU-5.2.6A
All licensees are subject to direct debit for the payment of the annual license fee and must complete and submit to the CBB a Direct Debit Authorisation Form by 15th September available under Part B of Volume 5 (Specialised Licensees) CBB Rulebook on the CBB Website.
Added: July 2013AU-5.2.7
For new
licensees , their first annual license fee is payable when their license is issued by the CBB. The amount payable is the floor amount of BD6,000.Amended: July 2013
January 2013AU-5.2.7A
For the first full year of operation for
licensees , thelicensee would submit a Form ALF by the 15th October of the previous year for which the fees are due, and calculate its fee as the floor amount. For future years, thelicensee would submit a Form ALF by 15th October of the preceding year for which the fees are due and calculate its fee using its last audited financial statements (or alternative arrangements as agreed with CBB, should its first set of accounts cover an 18-month period).Added: July 2013AU-5.2.7B
Licensees must pay a fixed annual fee of BD 1,000 for each locally incorporated SPV in Bahrain which is under the control of and/or providing an actual business function, service or activity (whether actively or passively) for thelicensee and/or others at thelicensee's direction or having been established under thelicensee's direction for that purpose. The CBB approval for any new SPV will only be granted, once the annual fee has been paid. The full amount of the BD 1,000 annual fee is due in the year the SPV is set up and it is not prorated for the number of months remaining in the year.Added: January 2014AU-5.2.7C
Paragraph AU-5.2.7C does not apply to SPVs of
Bahrain domiciled CIUs . In the case ofBahrain domiciled CIUs ,licensees should refer to the relevant Chapter in Module ARR of Volume 7, depending on the classification of theBahrain domiciled CIU .Added: January 2014AU-5.2.8
Where a license is cancelled (whether at the initiative of the firm or the CBB), no refund is paid for any months remaining in the calendar year in question, should a fee have been paid for that year.
January 2013AU-5.2.9
Licensees failing to comply with this Section may be subject to financial penalties for date sensitive requirements as outlined in Section EN-5.3A or may have their licenses withdrawn by the CBB.Added: July 2013
